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Major US Indices Hit Record Highs Overnight

indices, index, NYSEUS stock indices closed higher on Monday, as energy stocks spiked two percent higher on oil prices. There is renewed optimism that OPEC is near a deal to cut oil production.

Many analysts remain skeptical but the markets are hoping that OPEC will reach a deal and this sent the major US indices higher on the day. The three major stock bourses, the Dow Jones closed up 88 points hitting a new record high as did the S&P 500 and the Nasdaq Composite. All three indices are now at record highs as they surpassed and closed above previous intraday high levels.

The Russell 2000 and the S&P Mid Cap 400 stock bourses also hit new highs. Both of these stock indexes track small and mid-cap plays in the US stock markets.

Crude Oil Supports the US Indices

Oil, and the commodity space in general, is leading the way for US stocks. Crude oil has also been getting a boost from a weaker US Dollar.

US WTI Crude contract rose 3.9 percent in the US trade session to close at $47.49 per barrel. The US Dollar index, which had surged 2.24 percent last week to hit a high not seen since 2003, fell back a bit to close at 100.90.

For now, it is expected that crude oil will enter into a range trade until OPEC meets on November 30 to hopefully announce a curb in oil production. Both Iran and Russia have issued statements that they would be onboard towards oil production cuts. Statements from both countries have been encouraging since Sunday. For now, oil should range between $40 up towards $50 per barrel. There is high supply and a slow growth in demand for the black gold.

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